Addax Petroleum (fka AXC)

[Julius Erving]

Hi Doc,

Thank you for your note. ERHC has a policy that prohibits executives from interacting directly with investors. This is for the protection of the Company, the executive and the investor to prevent the possibility of inadvertent violations of federal disclosure regulations that prohibit selective disclosure of material information.

Assuming you have reviewed the Company’s previous disclosures regarding ongoing negotiations with a potential farm-in partner in Kenya, there is no additional information to share at this time.

Here is the Company’s most recent update: http://erhc.com/news/q32013-update-on-progress/
And here is the Company’s most recent quarterly 10-Q filing: http://www.sec.gov/Archives/edgar/data/799235/000114036113032090/form10q.htm

Status and Developments in Kenya at June 30, 2013
As of June 30, 2013, ERHC was preparing for the rollout of activities on its exploration work program in Kenya Block 11A and simultaneously entertaining discussions with other companies interested in farming into the Block. On May 5, 2013, the Company announced that it had signed a letter of intent with an integrated international oil and gas company for a farm-out of part of the Company’s interest in the Block.

The Company’s potential partner is a multinational operator with exploration and production interests spread across several continents. The parties are proceeding to negotiate the definitive terms for a farm-out. Any agreement reached will be subject to the approvals of the respective boards of both companies and of the Government of Kenya. As of June 30, 2013, no agreement has been reached.
Until a definitive farm-out agreement is entered into and approved, ERHC continues to operate Kenya Block 11A. ERHC’s work program under the PSC is continuing apace.

It is not unusual for a letter of intent to include a confidentiality clause that would prevent one company from identifying another company. That is the case in our letter of intent. ERHC Energy is prohibited from identifying the other company involved. With all due respect to Mr. Gismatullin (if he actually responded as you claim) ERHC is doing nothing out of the ordinary and any suggestion to the contrary is incorrect.
Sincerely,

Daniel Keeney, APR
DPK Public Relations

DFW: 214.432.7556
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